This section of the Annual Report provides technology transfer activity statistics and financial statements
for each campus in the UC system. Unless otherwise noted, the campus portfolio is managed by OTT. The following
facts and definitions apply to this and the previous section of the report.

Active invention portfolios count each basic technology only once, even if multiple US patent applications
have been filed from a single invention disclosure.

OTT manages a number of inventions involving faculty from multiple UC campuses. Activity statistics for these
inventions are reported multiple times, once for each campus involved. Thus, for any given measure of activity,
the sum of individual campus numbers may be greater than the systemwide totals reported in Part 1 of this Annual
Report.

Licensing activities of OTT’s plant program are reported separately from activities associated with utility
licensing because a relatively small number of plant varieties developed on the Berkeley, Davis and Riverside campuses
are licensed nonexclusively to a large number of growers and distributors.

Fees and royalties are treated as income for reporting purposes whereas reimbursements are treated as offsets
to expenses. Adjusted gross income equals total royalties and fees minus payments to joint holders.

Legal expenses include all costs incurred for patent prosecution and maintenance, litigation, and other out-of-pocket
case expenses. Net legal expenses equals total legal expenses less reimbursements from licensees.

Inventor share payments in FY97 were based on financial activity in FY96; therefore, no correlation should
be made between income and inventor share payments in FY97. The State share is equal to 25% of the amount remaining
after deducting net direct expenses for all cases and total inventor share payments from adjusted gross income.

Activity statistics and financial information have been revised from prior reports to reflect updated information.

Activity of UCB’s and UCSF’s software and copyright licensing programs are not included in the charts in Part
1, but are presented in the respective pages for these campuses.